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April 24, 2024

Safeguarding deposits: PDIC distributes P614 million to affected bank customers

The Philippine Deposit Insurance Corporation (PDIC) disbursed P614 million in deposit insurance to depositors impacted by the closure of banks in 2023, in line with its set turnaround objectives.

A total of 15,796 valid accounts from seven banks, overseen by the Bangko Sentral ng Pilipinas (BSP), received payments. These banks include the Rural Bank of San Agustin (Isabela), Rural Bank of San Marcelino, Binangonan Rural Bank, Rural Bank of San Juan (Southern Leyte), Bangko Pangasinan – A Rural Bank, Inc., United Consumers Rural Bank, Inc., and Rural Bank of Talisay (Cebu).

The distributed sum accounted for 87% of the overall deposits and 94% of the estimated insured deposits, totaling P651.3 million. Among the disbursements, P137 million was directly allocated to depositors who didn’t require claims, constituting 22% of the total payments for the year.

This accelerated procedure proved advantageous for 13,546 account holders, representing 86% of the total, who received their funds within 10 to 17 days from the bank closures, exceeding the expected timeframe of 14 to 19 days.

To be eligible for this expedited process, depositors needed to maintain account balances of P100,000 and below, have no outstanding loans with the closed bank, and ensure updated contact information on file.

Additionally, PDIC resolved claims totaling P477 million for depositors necessitating filing, representing 78% of the year’s total payments. These claims were processed within 15 to 26 days, surpassing the targeted timeframe of 21 to 27 days. This provided relief to 2,250 deposit accounts, comprising 14% of the total accounts paid in 2023.

Depositors affected by the bank closures are granted a two-year period from the PDIC takeover date to submit their insurance claims.